Below please find the July 2012 Market Condition Report for the Reno-Sparks Area provided to us by our friends at First Centennial Title. The price increases that the market has been experiencing over the past few months are projected to continue in the near future. See commentary below.
Click on the report to enlarge.
Commentary from the July report…
- OVERVIEW: Demand surged last month while supply is very constant in the current range. The effect of these twin forces places mounting pressure on the price schedule. In the graph, observe the upward slope of the trend lines in the current period. This is not peculiar to the Reno area. Prices are now moving positively in all major markets such as Las Vegas and Phoenix. This common price movement has the same shared component—the reduction in supply and a continuation of demand relative to that supply.
- PERCENT SELLING (MARKET EFFICIENCY): It is now very favorable to the seller (up for the 4th month) and pointing to a market where increasing prices are likely.
- WEEKS SUPPLY GIVEN DEMAND (ABSORPTION RATE): The absorption rate has reversed and is now on the decline. This is a good sign that further price increases will be sustained.
- RATIO OF SUPPLY TO DEMAND: The ratio of supply to demand continues to hover in the 3-4 point range. This range will support price stabilization and a positive price propensity. However, price movements will be slow and erratic. Other areas are experiencing ratios of 1-2 and are much tighter markets. Price increases in those markets are more pronounced and consistent. A good way to characterize the Reno market is “slow and steady” when it comes to price movement.
Related post: FCT’s Market Condition Report – June 2012